Glove and condom maker Ansell to cut products, jobs

01 July 2014

Editorial

Glove and condom maker Ansell is to cut 100 products and 300
jobs as part of a global restructure.

AAP reports that the $US125 million ($A135.24 million)
restructure will also involve the transfer of the Australian headquarters of
Ansell's sexual health division to Brussels. This division, which makes condoms
and lubricants, is being moved to be closer to growing markets.

The job losses will include about 50 management positions
and about 250 positions from the group’s manufacturing plants in Malaysia and
the US which will be closed.

In addition, the recently acquired BarrierSafe Solutions
International (BSSI) will be integrated into a revised Global Business Unit
(GBU) Structure, with four GBUs that have been reorganised to focus on
prioritized growth verticals.

Commenting on the changes, Magnus Nicolin, Ansell Managing
Director and CEO said in a statement, “These changes will also accelerate delivery against our
strategy to improve manufacturing productivity, invest in efficient back-office
processes and realize additional synergy benefits from recent acquisitions,”

According to the group, the restructure will reduce earnings
per share by around US80 cents after one-off costs in the current financial
year. However, it will not change its full-year dividend.

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